Earnings Per Share

Earnings per share (EPS) is a measure of a company's profitability and is calculated by dividing a company's earnings by the number of its outstanding shares. Because using a per-share figure controls for a corporation's size, investors can more easily compare the profitability of small and large companies by looking at EPS. However, it is important to note that different profit margins are acceptable for different industries, so what may be outstanding results for one company may be only moderate for another.